South Dakota District Office Success Stories

South Dakota District Office Success Stories

Midwestern Mechanical, Inc. is a plumbing, heating, HVAC and fire protection contracting firm with a reputation for providing quality work design and service in the region. The work performed includes new work, additions, alterations, maintenance and repairs. Midwestern Mechanical has offices in Sioux Falls and Rapid City in South Dakota, and Sioux City and Spencer in Iowa. In 1983 at the age of 23, Dwayne Klarenbeek established the business in Sioux Falls and has successfully grown the operation over the past 29 years. Throughout the years, the business has expanded from a start-up two-man shop to the current 125 employee operation it is today. Many of its employees have been with the company since its inception. Expansion began in 1998 whenDwayne opened the location in Sioux City. The business expanded again in 2009 to Spencer and then in 2010 a fourth location was opened in Rapid City. These expansions were made possible through guaranteed loans with the U.S. Small Business Administration. In 2012, Dwayne turned to Dakota BUSINESS Finance to assist him with obtaining an SBA 504 loan to refinance his existing building in Sioux Falls which was completed in 2008. While sales have steadily increased to a level of approximately $20 million per year, competition and the cost of materials have also continued to increase. In response to adversity and the changing economic climate, Dwayne implemented several significant changes to address the issues. Midwestern Mechanical has reportedly dramatically changed its focus and direction and now focuses on margins, profitability, efficiencies and relationship building. Dwayne also shows personal involvement in the day-to-day operations of the business. Monthly meetings are held with the foreman to discuss quality and performance issues such as job layout, manpower scheduling, material ordering, quality control and safety issues. These brainstorming sessions often include the owners and project managers. Dwayne has also started making regular brand and jobsite visits which have shown to boost employee morale and improve quality and efficiency. In addition to being an experienced businessman and successful entrepreneur, Dwayne understands the importance of community involvement as well as continued improved and innovative business ideas. Midwestern Mechanical is a member of the South Dakota Association of Plumbing – Heating – Cooling Contractors, Inc., which Dwayne has said has helped him develop important relationships with other contractors and supplies. He also supports the local Chambers of Commerce in the cities where his businesses are located. Dwayne was named the South Dakota Small Business Person of the Year for 2013.